Over the past 20 years, credit and 'a part of British culture. Purchasing goods with credit cards, personal loans to finance or store is no longer seen as a taboo, and is probably to save himself promoted through advertising and promotions. At first glance, the claim is not in itself a bad thing, provided that the debt can be repaired. The problem, however, where you focus too much debt and are in a situation where you can not stay up to date with repayments.
I thinkthat the level of personal debt has increased in the United Kingdom on the back of increases in house prices between late 1990 and v. 2007. Individuals were able to borrow money in the form of credit cards and then equity release from their property, consolidate debt, if the monthly repayments become unmanageable.
With the start of the credit crisis and the consequent decline in commodity prices, the ability of people to consolidate their debt with equityRelease are greatly reduced. As such, in which debts are problems, people taking into account the direct solution of the debt, as debt management, individual voluntary arrangements and bankruptcy. Official statistics from the Insolvency Service by insolvency on 1 May was released in 2009, an increase of almost 20% over the same quarter in 2008, the number of people formally (or bankruptcy or insolvency IVA).
If the debtor is a homeowner in distress, unsecuredCreditors are probably more protected, because the debt will be solutions such as a VAT or failure, as a rule, equity release related to the property. Creditors should do so right to be concerned about the debtor, not owned. Many young people have not been able to adapt to the scale of property over the past 15 years or so, because given the growth in house prices. However, these people were allowed to borrow money on an unsecured basis is often considerably.
Inlast 5 years I have seen more and more young people are old at age 20 to 30 years, who are struggling with serious debts. It is not uncommon for these debts of £ 30,000 to create and often through the use of credit card and personal loans. What was disturbing for creditors is not a property, be worried, these people are beginning to understand that the plans for debt management and Ivas means more time to repay the debt. On the other hand, declaringFailure, are young men without property likely to report little or nothing of his guilt.
The fact is that most young people who are good just can not go unpunished, the transformation of failure. It is not intended for the publicity associated with the bankruptcy and worries that the process may seem more within 12 months. In addition, young people are in relation to banks, like most of the enemy. Have you seen the banks posting huge gains during the boom yearsand more recently large sums in government bail-outs. As such, young people do not feel any sense of guilt when they are in a position where they are unable to repay their debts. I am therefore very unlikely to repay an attempt to try to meet their debts and a tax plan or debt management and much more for the road of bankruptcy.
In my experience the majority of young people is not a stigma of failure and increasingly are attached to this report in questiontake this route to solve their debt problems. The banking sector must be aware of this situation and think carefully about their lending criteria for the young.
No comments:
Post a Comment